There is at least one other way oil can get into the combustion chamber--thru the PCV hose. Not saying that this is what happened, just that it is possible. I had an Austin Healey Sprite that was consuming gallons of oil that way.
My bet would be on the turbo.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13